Mississippi Weighs Higher Local Bid Threshold
Lawmakers are considering changes to the $5,000 threshold that governs how cities and counties buy goods and services.
Updated on Nov. 4, 2026 in City Hall
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A Mississippi Senate committee held a hearing on proposed changes to local government procurement law, including a push from local officials to raise the $5,000 competitive-bid threshold to $15,000. Current law requires at least two written bids for expenses above $5,000 and public advertisement for expenses above $75,000.
Why it matters
The threshold has not been adjusted since 2007, and advocates argue it no longer reflects current costs or the administrative burden on local governments. How lawmakers set the rules will shape how cities and counties across Mississippi spend public money.
Mississippi currently requires two written bids for expenses above $5,000 and public advertisement for two weeks above $75,000. Whether the $15,000 proposal advances remains unresolved.
The players
Mississippi Senate Accountability, Efficiency, and Transparency Committee
The state Senate committee that reviews government accountability and procurement matters and held the hearing on proposed changes.
Hattiesburg Mayor
The city's mayor, who publicly advocated raising the bid threshold to $15,000 as a way to ease local administrative costs.
The details
At the Accountability, Efficiency, and Transparency committee hearing, local government advocates proposed raising the bid threshold to $15,000 and expanding group purchasing. Local governments are not legally required to accept the lowest bid but must record a detailed justification when they reject it.
Timeline
2007: The Mississippi bid threshold was last adjusted from $3,500 to $5,000.
Wednesday: The Senate Accountability committee held its hearing on procurement law changes.
Upcoming session: Lawmakers are expected to consider the proposed changes.
City Hall
Mississippi's last change to its bid threshold came in 2007, when it rose from $3,500 to $5,000. Neighboring Louisiana and Alabama set their thresholds at $30,000, which is the benchmark advocates are pointing to in the current debate.
If the threshold rises, cities and counties could make more purchases without formal competitive bids, which could speed routine buying. Taxpayers would have less built-in competition on mid-sized contracts, so oversight would matter more.
The takeaway
Procurement thresholds set how much competition public money must face before it is spent, so changes to the $5,000 line affect local budgets across Mississippi. Readers should watch whether lawmakers move the threshold and how much oversight remains.
Further reading
For related coverage, see City Hall across Mississippi.
Source note: This article includes information reported by Delta Democrat-Times.
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Should local governments be allowed to skip bidding on purchases up to $15,000?
